Edtech platform Byju's has rolled out a new policy where it links the salaries of sales staff to the revenue that is generated every week, as per a report by Moneycontrol. This comes amidst a deep financial crisis that the edtech platform is facing.
As of now, Byju's has paid only part of the February and March salaries to its employees. The report says that a percentage of the weekly revenue generated by the sales staff would be paid directly as salary.
Inside Sales and Byju's Exam Prep Team are the teams for whom the policy will be applicable. Introduced on April 24 by the company, the policy will be there for a four-week period until May 21.
As per the internal document of Byju’s reviewed by Moneycontrol, “Starting immediately, 50 percent of the upfront weekly collection will be directly disbursed to our sales associates every week for the next four weeks. For instance, if an associate successfully collects Rs 50,000 in revenue generated from orders between April 24th and April 30th, they will receive Rs 25,000 on May 1st.”
Read: Byju’s Partially Settles March Salary Dues Before NCLT Hearing: Report
Byju's has said that they have suspended the base salaries for the sales team associates, as per the report. Byju's added that employees won't receive payouts in their salaries for this period as their base salary is suspended.
Byju's has said that three factors will impact the percentage of payout: the revenue that's generated by employees, the number of sales associates, and their designation. Byju's has said that if the managerial-level employee is not able to withhold the sales associates from the team, it might result in a reduced payout.
The edtech platform has already witnessed resignations. One of the latest resignations was when Byju's India CEO, Arjun Mohan, resigned and Byju Raveendran took on the role of managing the daily operations.
Talking about the new initiative, as per the report, Byju’s said, “This strategic initiative ensures that our sales team experiences timely payouts even during periods of operational adjustments and system optimizations. It reflects our proactive approach to maintaining financial stability for our team members while we enhance and refine our ecosystem.”
